Triple Tax Free HSAs, Data Center Boom, Tinder Date to Singapore Prison, Southwest Airlines Transformation Continues

Another TBB post featuring the most eclectic links around the web such as the triple tax free HSAs, data center boom, from a Tinder date to Singapore prison, the Southwest Airlines transformation continues, heroes holding up the Internet, Math gets blown up by AI, when anesthesia goes wrong, most haunted places, the very first travel blog before Google existed, only the best photography and Thailand links and of course always all of the most important developments in the crazy world of frequent flyer miles and points at the lower half of the post. And much more. Enjoy the weekend.

 

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This blog started way back in 2012 focusing on my crazy hobby addiction of traveling with frequent flyer miles, hotel and bank points. It has since evolved to curated posts featuring the best web content along with my commentary.

 

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This is truly a one man labor of love operation, enjoy it while it lasts.

 

 

QUOTE OF THE WEEK

 

“The measure of a man is what he does with power” – Plato

 

 

PERSONAL FINANCE

You see this during bull markets. It is frustrating seeing these wizards act like this but you must understand that it is ok and not let it bother you. Because it happens in EVERY bull market. And this one has been going strong for a while so this behavior is normal. But I must admit I could not stop shaking my head by some of these “players”, see for yourself: At Robinhood’s Mecca for Risk-Loving Traders, Everyone Has a Tale of Getting Rich. The stock market is back at records. These everyday Americans are one reason why.

“The trend is always going to be up and to the right,” said Sara Brescia O’Rear, a former pharmacist who retired in her 40s thanks to her investing success. “I’m willing to take on risk because I know it can pay off.” [Pretty sure Sara will start a YouTube channel sharing with the world her investing wisdom…the one with the bold font I singled out for you, LOL.]

Markese Johnson said he never considered buying stocks until well into adulthood, when a childhood friend started showing him the ropes while Johnson was serving in the U.S. Army. His lucky break came when he bought several thousand shares of cloud computing company IREN when its share price was roughly $4. The stock is now trading around $35. “It’s helping me live a lifestyle I never dreamed I would live,” he said. Now, Johnson said he can afford experiences that once felt out of reach, like vacations to the Dominican Republic, or courtside seats to a Washington Wizards game. “I want [my children] to see you can build wealth the right way,” he said. [If building wealth the right way is betting bigly on an individual stock that is trading under $5, I am Batman! And yeah, having your children watch you blowing it on expensive vacations and tickets for courtside NBA games is most likely harming them for the rest of their lives smh…]

 

Alexander Bittan made millions betting on Tesla shares back in 2017 and has been a fan of going all-in on just a few stocks ever since. Most of his investments are still tied up in a couple of tech names. “If you have a couple high-conviction names, that’s all you need to become extremely wealthy,” he said. “But you have to be right.” [Riiiiiight…]

 

James Chen, who was born in China, lost his job about a year and a half ago and decided to focus on investing full time. Since then, he has made about five times his former salary trading options and stocks like Alphabet, Tesla and Robinhood. “In the past, my goal was to make it in corporate America,” he said. His new aim? “Trade myself into the new American dream.”  [Good luck!]

 

…in 2024, Colin Edsman bet half of his savings on a stock trading for less than a dollar a share. A year later, the company, mineral provider United States Antimony, saw its share price climb into the double digits. Edsman made more than $13,000—and has made several similarly successful trades since. “I’ve never relied on luck,” he said. “I figured I could make my own.” [Dude, maybe start your own hedge fund, you have IT.]

 

In March 2020, Lance Zakrzewski put every dollar he had into the market, even taking early withdrawals from his retirement account, to plow more money into tech and dividend-paying stocks. His net worth tripled during the monthslong rebound that followed. The steady gains in his portfolio have allowed for some splurges, like the nine-day Caribbean cruise he booked for him and his mother, Kitty Zakrzewski, once Hood Summit wrapped. Zakrzewski said he is somewhat concerned about the market’s reliance on a handful of AI companies. But should stocks suddenly tank, he has a plan. “Probably just buy more.” [Everyone has a plan until, you know, what Mike Tyson once said. And for crying out loud, NEVER do that!]

 

I think the Wall Street Journal should do an update on all these people who were quoted in this article one day. Just to see what actually happened. And I hope they did look at some evidence. Because in this age of influencing social media and mind numbing grift maybe reporters should not take shit people say seriously. Unless the plan all along was to show the absurdness of all these quotes above.

I think Health Savings Accounts HSAs are great. If you have been reading my blog, this is nothing new of course. Triple tax free goes a very long way. But, HSAs have a flaw. As in when you die (or the spouse who had inherited it from you dies) all tax benefits go poof: Your HSA Needs a Succession Plan.

If your spouse is the designated beneficiary of your HSA, the HSA becomes theirs after your death, and the tax benefits continue. They can continue to take tax-free withdrawals for qualified healthcare expenses. But if a person other than your spouse inherits the HSA, the account is actually less attractive than the other key account types I mentioned before. That’s because an HSA inherited by a nonspouse beneficiary effectively ceases to be an HSA upon the account owner’s death, and all of its tax benefits go away at that time, too. Moreover, the nonspouse will need to include the inherited HSA amount in their income and pay taxes on it.

So, spend your HSA! I am doing my best to do so as we have been contributing the maximum for many years (and investing aggressively) and now we can’t spend enough lol. Also, investing in your health always pays dividends. In case you forgot about how good the HSAs can be, here you go: How to Get All the Tax Benefits From Your Health-Savings Account.

 

AI/TECH

We owe a lot to these people: The people holding up the internet. Billions of phones run on code looked after by a handful of people. We counted them from the code itself. I had no idea about this, shocking actually.

It does not look good for them but, you know, things happen and may evolve differently: What Will Happen to Indian IT? The past and future of the “world’s back office.” 

The before and after map comparisons will blow you away: What the Data Center Boom Looks Like From the Sky.

If my major in college is Math, I would be very concerned about my future job prospects: ‘Breathtaking,’ ‘Devastating’: Mathematics Reels After New OpenAI Release. Hundreds of new A.I.-generated findings moved the frontiers of higher math in a single day — dispelling any doubt that the field is forever changed.

 

SCAMS/CRYPTO

Some years ago I blogged here about a guy who had figured out a way to trick online streaming platforms using AI and generated gazillions of clicks. And made millions along the way. And, well, he is going to prison for 18 months plus 2 years of supervised release and forfeiture of $8 million, who is laughing now? A.I. Music Fraudster Who Drew Millions in Royalties Is Sentenced to 18 Months.

 

 

 

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3 Comments

  1. Hello from the Detroit airport!

    I’m going from an Indianapolis conference back to Virginia. By Delta of course. I think Detroit is my favorite transfer airport. Minneapolis st Paul is the absolute worst.

    Thanks for all the weekend reading!

  2. Silver! For the glory and honour of the Pacific Northwest! Man, as always tons of great reading for me over the weekend! Thanks, George!

    Not a fun day as a return to the Cardiologist to talk about more treatment and maybe some new kind of small device stuck in me (Fun for the TSA guys I guess) and then the installation of the new over the stove Microwave and vent hood combo that dies right within the company predicted time-frame. GRRR!

    But the weather is good, and I have fresh coffee and all this to enjoy as I have time. Hope all is going well with you as I contemplate starting plans for my next return to Italy!

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